College Acct 1- Chapters 4-6 Review

Front

Merchandise Inventory is reported on the ____________ and as a(n) ___________ asset.

Back

Balance Sheet; current

Front

Cost of Goods Sold is calculated by which of the following ways? Beginning Inventory + Purchases - Ending Inventory, Ending Inventory + Beginning Inventory, Sales - Sales Discounts, Gross Profit - Expenses, Revenue - Expenses

Back

Beginning Inventory + Purchases - Ending Inventory

Front

Which of the following accounts does NOT appear on the balance sheet of a service company? Accounts Receivable, Cash, Building, Merchandise Inventory, Supplies

Back

Merchandise Inventory

Front

A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it returned $800 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount that it was entitled to. The cash paid on June 24 equals:

Back

$8,924

Front

Stuart Company had sales of $135,000, sales discounts of $2,000, and sales returns of $3,200. Stuart Company's net sales equals:

Back

$129,800

Front

The credit terms 2/10, n/30 are interpreted as:

Back

2% cash discount if the amount is paid within 10 days, or the balance is due in 30 days

Front

A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 8, it paid the full amount due. The amount of the cash paid on July 8 equals:

Back

$1,568

Front

At the end of the accounting period, which of the following accounts would NOT be closed? Cost of Goods Sold, Merchandise Inventory, Sales Returns and Allowances, Sales, Sales Discounts

Back

Merchandise Inventory

Front

The Sales Returns and Allowances account balance should be recorded as _________________ from the ____________ account balance because it is a contra revenue account.

Back

a deduction; Sales

Front

Which of the following accounts would be closed at the end of the accounting period with a debit? Operating Expenses, Sales, Sales Returns and Allowances, Sales Discounts, Cost of Goods Sold

Back

Sales